Jindal Worldwide Faces Financial Struggles Amidst Significant Stock Volatility and Declining Profitability

Jindal Worldwide, a midcap player in the Garments & Apparels industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 52.71. The stock underperformed its sector by 3.46%, with an intraday high of Rs. 56.48 and a low of Rs. 52.71. Currently, Jindal Worldwide is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
Over the past year, Jindal Worldwide has seen a decline of 24.24%, contrasting sharply with the Sensex, which has gained 5.37% during the same period. The company's financial health raises concerns, highlighted by a high Debt to EBITDA ratio of 2.81 times, suggesting challenges in servicing debt. Additionally, the operating profit has decreased at an annual rate of 19.64% over the last five years.

Despite its attractive valuation with a return on capital employed (ROCE) of 12.5 and a low enterprise value to capital employed ratio of 4.7, the stock's performance remains below par. Domestic mutual funds hold only 0.1% of the company, reflecting a cautious stance on its future prospects.